R&D Tax Credits

When should I claim the R&D tax credit?

The R&D tax credit is typically claimed when filing your annual tax return, but prior years may also be claimed through amended filings if still within the allowable time frame. Proper timing ensures that credits are not lost due to statute of limitations restrictions.

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Expanded Answer

When is the R&D tax credit filed?

The R&D tax credit is generally claimed on a company’s original federal income tax return using Form 6765. Companies that did not claim the credit in prior years may still be able to capture those benefits by filing amended returns, provided the statute of limitations has not expired.

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Given increased IRS scrutiny, it is important to ensure that credits are supported with proper documentation, including descriptions of qualified activities and the methodology used to calculate expenses. Filing within the appropriate timeframe ensures that companies maximize available benefits while remaining compliant. Source: https://www.irs.gov/forms-pubs/about-form-6765

What Qualifies

Activities that commonly qualify

Developing new software features or platform capabilities

Improving performance, scalability, reliability, or security

Building internal tools or technical workflows that required experimentation

Testing different technical approaches to solve engineering challenges

What Does Not Qualify

Work that usually does not qualify

Routine bug fixes with no technical uncertainty

Visual-only updates or minor design changes

Marketing, sales, and customer support work

General maintenance that did not require experimentation

Work already solved through an off-the-shelf implementation

Example Case Study

Example of claiming R&D tax credits retroactively

A company identifies that it has been performing qualifying development work for several years but has never claimed the R&D tax credit. After reviewing its historical activities and expenses, it determines that prior years are still eligible for amendment.

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By filing amended returns within the allowable timeframe, the company captures previously missed credits and secures a refund, while also incorporating the credit into its current-year tax filing strategy.

Quick takeaway

If your team had to work through technical uncertainty, there is a good chance the work deserves a closer look.

Common Industry Examples

Filing Form 6765 as part of the annual federal tax return process

Identifying and amending prior-year returns to capture missed credits

Reviewing historical financial and technical data for eligibility

Tracking development activities consistently across multiple tax years

Maintaining documentation to support claims in the event of IRS review or audit

Curious if you are missing out on credits?

Start with a quick eligibility check. If it looks promising, we move to a light info request and one technical interview.

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